What kind of investment accounts do you need for your financial goals? There are various investment accounts, depending on your lifecycle and financial goals. Choose investment accounts that advance your goals. Your goals may include beginning to invest, saving for retirement and college, maintaining liquidity for emergencies, and implementing tax optimization strategies. These accounts can help you build wealth. Families may want to set up college savings or custodial accounts for young children, including a […]

For people buying health insurance via the Affordable Care Act marketplace, premiums are expected to rise significantly in 2026. That’s the result of two things. Firstly, insurers are proposing a median premium increase of 18%. And secondly, enhanced premium subsidies (which have been in place 2020 – 2025) are scheduled to expire at the end of this year. That second point means, among other things, that (if no legislation is passed) we’ll go back to […]

                               The month of July 2025 is another month of dividend income landing in my accounts.  Due to becoming debt free, I changed my pay myself model. Starting the beginning of August 2021, I am paying myself 30%, just like before. This will now consist of 24% to investing, and 6% to savings.  The investment portion is going to my TFSA. […]

After a week of reviewing the tax-free exclusion rule for selling a rental property, I decided not to sell. I’d already used my $500,000 tax-free exclusion amount and would need to wait at least two more years before I could potentially use the full amount again. Most importantly, I’m on a mission to boost my […] The post Earning Passive Income Requires Optimization And Sacrifice appeared first on Financial Samurai.

The Roth IRA is one of the best investment vehicles available, which is one reason why they limit your contribution based on your modified adjusted gross income. Normally, if you’re under the income limits, a single filer can contribute $7,000 for 2025 ($8,000 if you are age 50 and older). If you make more than $150,000 but less than $165,000, the contribution limit is decreased as you move up that income spectrum. If you make more than $165,000 – you are not permitted to contribute to a Roth IRA. (For married filing jointly, the income phaseout is $230,000 to $240,000) But there are still ways for you to get money into a Roth IRA if you exceed the income limits. 😍 If you are looking for a Roth IRA, here are our favorite Roth IRA brokerages. Table of ContentsRoth 401(k)Roth ConversionBackdoor Roth ConversionMega-backdoor Roth ConversionConsult a Tax Professional Roth 401(k) While not technically a Roth IRA, it still benefits from the tax treatment of a Roth IRA but in 401(k) form. If your employer offers it, it’s a great way to essentially get a supercharged Roth IRA because there are no income limits and the contribution limit is $23,500 in after-tax funds. Those ages 50 and up can contribute an extra $7,500 while those ages 60-63 can contribute up to $11,250 more. This limit is shared with your traditional 401(k) so make sure you plan for this accordingly. Roth Conversion A Roth conversion is when you convert a tax-deferred account, like a traditional IRA, into a Roth IRA. You can convert all of it or just part of it and you’ll owe income tax on the amount you convert. This includes your original contributions plus any appreciation or dividends that have accrued. If you contributed after-tax dollars to a traditional IRA, those will not be taxed on conversion. If you convert a mixture of pre-tax and post-tax dollars, the pro rata rule says you pay taxes based on the percentage of pre-tax and post-tax dollars in all of your IRA accounts. You can’t “pick” to convert just the post-tax dollars. Another thing to remember is that the conversion has its own five-year holding period (for the purposes of calculating penalties if you withdraw the funds before 59.5) that starts on January 1st of the year you make the conversion. 🤔 Remember, when you withdraw funds from a Roth IRA, the IRS assumes you’re taking out contributions first, then conversions (in order of oldest to youngest), then earnings. Backdoor Roth Conversion A backdoor Roth conversion is a special name for a Roth conversion where you contributed dollars into a traditional IRA but never took the tax deduction, thus making them after-tax contributions. It’s titled backdoor because other than a few extra logistical steps, you’ve essentially contributed into a Roth IRA. You can convert the Traditional IRA into a Roth IRA at any time but if you invest your funds while in the Traditional IRA, any gains are subject to income taxes.

🎙️ Episode #435 – Trump’s new tax bill could save real estate investors $1000s this year, and it’s flying under the radar. 100% bonus depreciation… The post Did the Big Beautiful Bill Just Make Rentals More Profitable? appeared first on Coach Carson.

The stock market outlook continues to show an uptrend for U.S. equities.

Retirement planning is a big part of your financial preparation and strategy. Your 401(k) is one of the best retirement investing accounts you have and so easy to set up through your employer. Add on tax free or tax deferred growth and matching employer contributions and you’ve got a retirement planning powerhouse. However, among the biggest retirement planning mistakes includes ignoring your 401(k) and forgetting to contribute to your workplace retirement account. Following are the 9 biggest retirement planning mistakes to avoid. Most of these 401(k) mistakes can be avoided with smart retirement planning and help from professional retirement consultants. 401(k) Mistakes That Can Cost You  Most experts agree that a 401(k) is one of the smartest ways you can save for retirement. But here’s the catch, about one-third of middle-class Americans are dipping into their retirement funds before actually retiring, according to a 2025 Transamerica Research study, “Retirement in the USA: The Outlook of the Workforce”*. If you do that, you could be putting your future financial security at serious risk. Withdrawing from your 401(k) before you turn 59½ typically means paying a 10% penalty in addition to any income taxes owed. That one decision could cost 30%+ of the amount withdrawn. These are some common retirement planning mistakes to avoid: 1. Being Unaware of Types of 401(k) Accounts When it comes to 401(k) accounts, most people can choose between two main types: traditional 401(k) and Roth 401(k). The difference between them can have a big impact on your retirement strategy. With a traditional 401(k), your contributions are made before taxes, so you lower your current taxable income. However, you’ll pay taxes later when you withdraw money from your 401(k) in retirement. This can offer major tax advantages today, depending on your current tax bracket. A traditional 401(k) might be a good choice if you believe that you’ll be in a lower tax bracket when you retire and start your withdrawals. On the other hand, a Roth 401(k) is funded with after-tax income, which means that you pay taxes on your income before funding the Roth 401(k). When you retire, your 401(k) withdrawals, including any investment growth, are completely tax-free. This account might be good for you if you anticipate that tax rates will go up in the future or that you’ll be in a higher tax bracket in retirement. 2. Failing to Make Saving a Regular Habit It’s easy to think you’ll start saving later when you feel more financially secure. But, if you don’t save enough, skip contributions to a 401(k) or fail to gradually increase your 401(k) contributions as your income grows, it could seriously impact your retirement savings in the long run. The good news is that it’s simple to get started. You can set up your 401(k) to automatically deduct contributions from your paycheck, so that you’re saving and investing automatically. Many plans also let you schedule automatic annual increases to your contribution rate. This way, you’re contributing a greater amount each